Scary Development: European Nations Begin Seizing Private Pensions
The most striking example is Hungary, where last month the government made the citizens an offer they could not refuse. They could either remit their individual retirement savings to the state, or lose the right to the basic state pension (but still have an obligation to pay contributions for it). In this extortionate way, the government wants to gain control over $14 billion of individual retirement savings.
The Bulgarian government has come up with a similar idea. $300 million of private early retirement savings was supposed to be transferred to the state pension scheme. The government gave way after trade unions protested and finally only about 20% of the original plans were implemented.
A slightly less drastic situation is developing in Poland. The government wants to transfer of 1/3 of future contributions from individual retirement accounts to the state-run social security system.
Full article on European governments’ seizure of private pension assets.
This is very worrisome.
I agree with Tom. This is very bad.
Wow! Talk about punishing the ant to pay off the grasshopper. If you’re a forward looking person saving money towards your retirement the government extorts that money from you so they can keep those who have no savings afloat.
You know what? I hate socialism!
Under the category of “it can’t happen here,” consider that when the Democrats controlled the House (2008) they held hearings on the idea of Guaranteed Retirement Accounts — essentially a government takeover of 401(k) funds.
The idea’s on the backburner, for now, but don’t think it won’t come back.
Good thing I don’t live in a former eastern block country.
I agree with Joe. I think it can hahppen here.
These countries should pursue the oppose course of action. Rather than seize private pensions, they should privatize the public pensions and force people (if need be) to contribute to a private account rather than being forced to contribute to a state-run, ponzi scheme.